CBIC notifies commencement dates of clauses (a) and (b) of section 135 & 128 to 131 of Finance Act, 2023 (FA 2023) as 1st April 2023 vide
Text of the Notification is as follows:-
MINISTRY OF FINANCE
(Department of Revenue)
S.O. 1567(E).—In exercise of the powers conferred by clause (b) of sub-section (2) of section 1 of the Finance Act, 2023 (08 of 2023), the Central Government hereby appoints –
(i) the 31st day of March, 2023, as the date on which the provisions of clauses (a) and (b) of section 135 of the said Act shall come into force;
(ii) the 1st day of April, 2023, as the date on which the provisions of sections 128 and 131 of the said Act shall come into force.
[F. No. 190354/45/2023-TRU]
VIKRAM VIJAY WANERE, Under Secy.
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Amendment of section 25 of Customs Act, 1962
128. In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 25, in sub-section (4A), after the proviso, the following proviso shall be inserted, namely:—
“Provided further that nothing contained in this sub-section shall apply to any such exemption granted to, or in relation to,—
(a) any multilateral or bilateral trade agreement;
(b) obligations under international agreements, treaties, conventions or such other obligations including with respect to United Nations agencies, diplomats and international organisations;
(c) privileges of constitutional authorities;
(d) schemes under the Foreign Trade Policy;
(e) the Central Government schemes having validity of more than two years;
(f) re-imports, temporary imports, goods imported as gifts or personal baggage;
(g) any duty of customs under any law for the time being in force, including integrated tax leviable under sub-section (7) of section 3 of the Customs Tariff Act, 1975, other than duty of customs leviable under section 12.”.
Amendment of section 65
129. In the Customs Act, in section 65, in sub-section (1), for the words “subject to”, the words, figures and letter “subject to the provisions of section 65A and” shall be substituted.
Insertion of new section 65A
130. After section 65 of the Customs Act, the following section shall be inserted, namely:—
’65A. (1) Notwithstanding anything to the contrary contained in this Act or the Customs Tariff Act, 1975, the following provisions shall, with effect from such date as may be notified by the Central Government, apply to goods in relation to which any manufacturing process or other operations in terms of section 65 may be carried out, namely:—
(A) the dutiable goods, which are deposited in the warehouse shall be goods on which the integrated tax under sub-section (7) and the goods and services tax compensation cess under sub-section (9), of section 3 of the Customs Tariff Act, 1975 have been paid, and only for the purpose of the duty payable, other than the said tax and cess paid, such dutiable goods shall be warehoused goods;
(B) the dutiable goods shall be permitted to be removed for the purpose of deposit in the warehouse, where—
(i) in respect of the goods, an entry thereof has been made by presenting electronically on the customs automated system, a bill of entry for home consumption under section 46 and the goods have been assessed to duty under section 17 or section 18, as the case may be, in accordance with clause (a) of sub-section (1) of section 15;
(ii) the integrated tax under sub-section (7) and the goods and services tax compensation cess under sub-section (9), of section 3 of the Customs Tariff Act, 1975 have been paid in accordance with section 47;
(iii) on removal of the goods from another warehouse in terms of section 67, a bill of entry for home consumption under clause (a) of section 68 has been presented and the integrated tax under sub-section (7), and the goods and services tax compensation cess under sub-section (9), of section 3 of the Customs Tariff Act, 1975 have been paid before the goods are so removed from that other warehouse;
(iv) the provisions of section 59, subject to the following modifications therein, have been complied with, namely:—
(a) for the words “bill of entry for warehousing”, the words “bill of entry for home consumption” shall be substituted; and
(b) for the words “amount of the duty assessed”, the words “amount of duty assessed, but not paid” shall be substituted;
(C) the duty payable in respect of warehoused goods referred to in clause (A), to the extent not paid, is paid before the goods are removed from the warehouse in such manner as may be prescribed.
(2) The provisions of sub-section (1) shall not apply for the purpose of manufacturing process or other operations in terms of section 65 to dutiable goods which have been deposited in the warehouse or permitted to be removed for deposit in the warehouse prior to the date notified under that sub-section.
(3) The Central Government may, if it considers necessary or expedient, and having regard to such criteria, including but not limited to, the nature or class or categories of goods, or class of importers or exporters, or industry sector, exempt, by notification, such goods in relation to which any manufacturing process or other operations in terms of section 65 may be carried out, as may be specified in the notification, from the application of this section.’
Amendment of section 127C
131. In the Customs Act, in section 127C, after sub-section (8), the following sub-section shall be inserted, namely:—
“(8A) The order under sub-section (5) shall be passed within a period of nine months from the last day of the month in which the application under section 127B is made, and if, no order is passed within the said period, the settlement proceedings shall abate, and the adjudicating authority before whom the proceeding at the time of making the application was pending shall dispose of the application in accordance with the provisions of this Act as if no application under the said section had been made:
Provided that the period specified under this sub-section may, for reasons to be recorded in writing, be extended by the Settlement Commission for a further period not exceeding three months:
Provided further that in respect of any application pending under sub-section (5) as on the date on which the Finance Bill, 2023 receives the assent of the President, the said period of nine months shall be reckoned from the date on which the said Finance Bill receives the assent of the President.”.
Amendment of First Schedule.
135. In the Customs Tariff Act, the First Schedule shall—
(a) be amended in the manner specified in the Second Schedule;
(b) be also amended in the manner specified in the Third Schedule;
(c) with effect from the 1st May, 2023, be also amended in the manner specified in the Fourth Schedule;
(d) with effect from the 1st April, 2023, be also amended in the manner specified in the Seventh Schedule;
